Value-based Lab Services Generate Better Outcomes and Economics for Providers and Patients
At this year’s Executive War College in New Orleans, the Praxeo Health team gathered with 900 leading industry professionals to discuss the latest innovations in clinical laboratories and other trends in healthcare.
Among the many exciting updates, the most promising opportunity is being called “Lab 2.0”, referring to the ability to leverage clinical lab data to improve the pre-analytic and post-analytic experience and assist clinicians in improving diagnoses and treatments. Ultimately, value-based approach refers to treating patient care as a complete solution, with the goal of lowering overall healthcare spend.
Labs (originally a stalwart of volume-based services or fee-for-service) are now looking to a new ‘true north’: to provide integrated services, screening and monitoring for physicians to use in their practices. By working with clinicians to offer continuous diagnostics and early identification of at-risk members in their patient population, labs plan to help physicians get patients on appropriate treatment plans sooner, limiting invasive procedures and saving on medical costs.
TriCore Reference Laboratories CEO Khosrow Shotorbani, MT(ASCP) presented to the conference and as CapToday reported last year, Shotorbani has made a point of simplifying the opportunity: “The laboratory industry is reaching Six Sigma performance in the analytical stage”—3.2 defects per 1 million transactions. “That’s almost perfect. The sad part is that on the preanalytical we do a lousy job of really helping the physicians choose the right test. And on the back end, we do an equally poor job of helping them interpret the test and to map it onto the next stages of therapeutic treatment,” he said. “Our current payment is tied to the analytical stage, yet our [physician-]customers are moving toward pay for performance.”
In addition to cost improvements, when clinical lab scientists work closely with physicians they can improve patient care. In 2010, the Wall Street Journal reported that physicians’ failure to order the right test is a contributing cause in 55 percent of costly, often deadly medical errors. Clinicians’ incorrect interpretation of diagnostic tests is a factor in nearly 40 percent of malpractice cases.
Replacing the fee-for-service model is a long road, but many labs and practitioners see distinct advantages to operating a lab 2.0. At Praxeo Health, we use our vast database of clinical data, our expertise in clinical chemistry, toxicology and pharmacogenetics, and state-of-the-art technology to help clinicians achieve better patient outcomes while improving their bottom line.
Interested in learning more?
We’d love to hear how diagnostics could better support your patient outcomes.
At Praxeo Health, we’re forging a new path as a lab of the future, focused on outcomes, not fee-for-service. Talk to your Praxeo Health Account Representative about our shared savings programs.